Sections 54A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These three sections close Chapter V. Sections 54A and 54B were added to deal with two kinds of old stamps whose holders were given a limited time to surrender them. Section 55 is of continuing interest to issuers of debentures: it allows repayment when a duly stamped debenture is renewed on the same terms.
Section 54A: a person holding stamps in denominations other than annas four or multiples of it, not spoiled, could surrender them within six months from the commencement of the Indian Stamp (Amendment) Act, 1958 (19 of 1958) for repayment calculated under section 14(2) of the Indian Coinage Act, 1906. Section 54B: a holder of unspoiled "Refugee Relief" stamps could surrender them within six months from the commencement of the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973) for refund in money or other stamps of the same value. Section 55: when a duly stamped debenture is renewed by a new debenture in the same terms, the Collector shall repay the value of the stamp on the original or the new debenture, whichever is less, on application within one month.
Overview and caution
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State of execution must be checked. This article explains the central Act only. The amounts and periods are quoted as printed. If your company renews debentures and wants to know whether the one-month window applies, our loan documentation support team can look at the documents.
Sections 54A and 54B refer to other Acts that the text prints as they stood: the Indian Coinage Act, 1906 (3 of 1906), the Indian Stamp (Amendment) Act, 1958 (19 of 1958) and the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973). The reader should check the current law for the Indian Coinage Act, 1906 reference; no replacement is named here. The sections follow Section 54, and each begins "Notwithstanding anything contained in section 54".
Section 54A: stamps in denominations of annas
The text
"Notwithstanding anything contained in section 54, when any person is possessed of a stamp or stamps in any denominations, other than in denominations of annas four of multiples thereof and such stamp or stamps has or have not been spoiled, the Collector shall repay to such person the value of such stamp or stamps in money calculated in accordance with the provisions of sub-section (2) of section 14 of the Indian Coinage Act, 1906, (3 of 1906) upon such person delivering up, within six months from the commencement of the Indian Stamp (Amendment) Act, 1958 (19 of 1958), such stamp or stamps to the Collector."
The section was inserted by Act 19 of 1958, s. 9 (w.e.f. 1-10-1958), according to the footnote. The printed phrase "annas four of multiples thereof" reads like "annas four or multiples thereof"; it is quoted as printed and not corrected.
What it provides
| Element | Text |
|---|---|
| Holder | Any person possessed of stamps in denominations other than annas four or multiples |
| Condition | The stamps have not been spoiled |
| Repayment | In money, calculated under section 14(2) of the Indian Coinage Act, 1906 |
| Surrender | To the Collector, within six months from the commencement of the 1958 Act |
| Collector's duty | He "shall repay" |
The six months were counted from the commencement of Act 19 of 1958. The footnotes show the amending provisions taking effect on 1-10-1958. The section's own period was tied to that commencement, and the text consulted does not say anything about its continuing use. The reader should not treat it as an open window and should check the current law.
Section 54B: Refugee Relief stamps
The text
"Notwithstanding anything contained in section 54, when any person is possessed of stamps bearing the inscription 'Refugee Relief' (being stamps issued in pursuance of section 3A before its omission) and such stamps have not been spoiled, the Collector shall, upon such person delivering up, within six-month, from the commencement of the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973), such stamps to the Collector, refund to such person the value of such stamps in money or give in lieu thereof other stamps of the same value."
The section was inserted by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973). Section 3A itself is omitted in the copy (the footnote cites the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973), s. 2, w.e.f. 1-4-1973). The printed "within six-month" is quoted as printed.
The proviso
"Provided that the State Government may, with a view to facilitating expeditious disposal of claims for such refunds, specify, in such manner as it deems fit, any other procedure which may also be followed for claiming such refunds." The text consulted contains no such procedure, and none is described.
What it provides
- The stamps must bear the inscription "Refugee Relief" and be issued in pursuance of section 3A before its omission.
- They must be unspoiled.
- They must be delivered within six months from the commencement of the 1973 Act.
- The Collector "shall" refund the value in money, or give other stamps of the same value, "in lieu thereof".
Section 55: allowance on renewal of certain debentures
The text
"When any duly stamped debenture is renewed by the issue of a new debenture in the same terms, the Collector shall, upon application made within one month, repay to the person issuing such debenture, the value of the stamp on the original or on the new debenture, whichever shall be less."
Taking it in parts
- Debenture. Defined in section 2(10A), which the copy prints with the heading "debenturte" (a printing slip); the definition is explained in the article on securities and debentures.
- Duly stamped. The original debenture must have been duly stamped.
- Renewed by a new debenture in the same terms. The Explanation says what changes still count as "the same terms".
- Application within one month. The period is as printed. The text does not say from what date the month runs.
- Repayment to the issuer. The repayment is to "the person issuing such debenture", not to the holder.
- Whichever is less. The Collector repays the value of the stamp on the original or on the new debenture, whichever is smaller.
The proviso
"Provided that the original debenture is produced before the Collector and cancelled by him in such manner as the State Government may direct." The manner is a matter for State direction, and none is in the text consulted.
The Explanation
A debenture "shall be deemed to be renewed in the same terms" notwithstanding these changes:
| Clause | Change |
|---|---|
| (a) | Issue of two or more debentures in place of one original debenture, the total amount secured being the same |
| (b) | Issue of one debenture in place of two or more original debentures, the total amount secured being the same |
| (c) | Substitution of the name of the holder at the time of renewal for the name of the original holder |
| (d) | Alteration of the rate of interest or the dates of payment thereof |
Worked example
Bharat Foods Limited issues a debenture of a stated amount, duly stamped, and on its due date renews it by issuing a new debenture in the same terms. The stamp on the original is worth more than the stamp on the new debenture. The company applies to the Collector within one month, produces the original for cancellation, and the Collector shall repay the lesser value, the stamp on the new debenture. If the company had replaced one debenture by two, with the same total secured, clause (a) of the Explanation keeps the renewal in the same terms. For debenture instruments, see the site's guides on stamp duty on bond and debenture and debentures: types, issue and compliance. Company-law points on debentures stay in the post on section 71 of the Companies Act, 2013.
Practical points
- Treat the one-month period in section 55 as strict and diarise it from the date of renewal.
- Keep the original debenture for production and cancellation.
- Sections 54A and 54B were tied to fixed commencement dates; check the current law before relying on them.
Need help renewing debentures?
Renewal on the same terms, the one-month period and the cancellation of the original all need to line up. Our loan documentation support team can review the renewal documents and the application timeline.
Key takeaways
- Section 54A allowed repayment for unspoiled stamps in denominations other than annas four or multiples, if surrendered within six months from the commencement of Act 19 of 1958.
- Section 54B allowed refund for unspoiled "Refugee Relief" stamps surrendered within six months from the commencement of Act 13 of 1973.
- Section 55 repays the issuer the lesser of the stamp values on the original and the new debenture, on application within one month.
- The original debenture must be produced and cancelled in the manner the State Government directs.
- The Explanation lists four changes that do not stop a renewal being in the same terms.
Read next
- Section 54 of the Indian Stamp Act, 1899: allowance for stamps not required for use
- Sections 52 and 53 of the Indian Stamp Act, 1899: allowance for misused stamps
- Section 56 of the Indian Stamp Act, 1899: control by the Chief Controlling Revenue-authority
- Stamp duty on bond and debenture
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.